1. Field of the Invention
The present invention relates to data authentication methods and systems and, more particularly, to a token device that generates and displays one-time passwords and couples to a computer for inputting or receiving data for generating and outputting one-time passwords and performing other functions.
2. Background Information
The role of computers in our society has grown dramatically over the last few decades. During the past decade, networking technology and the Internet have grown and matured. The Internet is fast becoming the primary platform for global communication and commerce. However, the ease of communication and information sharing that has driven the growth of the Internet has also made it more difficult to ensure the security of Internet transactions and to maintain the privacy of information accessible over the Internet.
To maintain security and privacy, many transactions and communications taking place over the Internet and other networked environments require that a user authenticate him or herself in order to access information or to conduct transactions. For example, an online brokerage typically requires a user to authenticate him or herself prior to accessing their account or trading stocks.
Authentication refers to the method of proving the identity of the user. To be authenticated, the user typically presents a unique credential to a website or network they desire to access. This credential is usually comprised of a username and a secret password. Both the username and secret password may be established by the user. Alternatively, the username may be assigned to the user by an administrator of the website, or a similar entity, and the user may generate their secret password. Other known alternative methods may also be used to generate the username and password.
Static usernames and passwords are the most common method of authentication in the networked environment. However, static usernames and passwords are prone to several types of attacks and impersonations such as “Trojan horses” and “dictionary attacks.” A user's static username and password can also be misappropriated through networking sniffers, password hacking programs, and other less sophisticated methods such as guesswork. For example, a user may have established a “weak” password using his date of birth or the name of his spouse as the password which may be easily guessed.
To strengthen authentication methods and prevent the types of attacks and impersonations described above, the network security industry has develop methods of authentication that go beyond simple username and password schemes. These methods may be categorized as challenge and response, Public Key Infrastructure or PKI, and One-Time-Password or OTP. These methods make impersonation attacks more difficult by creating longer and dynamic passwords. Longer passwords make it more difficult to guess the password, while dynamic passwords allow the authorized user to use the same username, but a new password each time.
Each new password is generated by hardware or software commonly referred to as a token device, or “token”. The token may be designed to display dynamic passwords. When authentication is needed, the user simply enters the dynamic password displayed by the token at that time. These token values are often supplemented with a secret PIN code know only to the user. A secret PIN code may also be used to activate the token in order to display the dynamic password. These authentication methods have the potential to replace simple username and password schemes in the future.